What is Share Buyback?

A definition of Share Buyback

“A share buyback is when a company purchases its own outstanding shares to reduce the number of shares on the market, potentially increasing the value of remaining shares.”

Share Buyback in Business Glossary - What is a Share Buyback?

Business Glossary > What is Share Buyback?


Examples of Share Buyback in a Sentence:

The company announced a share buyback to boost investor confidence.

Share buybacks can affect the stock price by altering supply and demand dynamics.

Companies might use share buybacks as a way to return capital to shareholders.

Why is Share Buyback Important in Business?

Share buybacks can signal management confidence in a company’s future and affect stock prices. They serve as an alternative to dividends for returning capital to shareholders and may impact financial metrics like EPS.

Know Your Niche Inside Out by Tomorrow: Learn everything you need to know about a niche from a report rushed to you in 24 hours, (or spend the next 3 weeks researching).

Associated Terms

Here are some associated business terms and synonyms for “Share Buyback”:

  • Stock Repurchase
  • Equity Buyback
  • Stock Buyback

Apple’s Share Buyback

Apple Inc. has frequently utilized share buybacks as a strategy to return cash to shareholders. In recent years, Apple launched one of the largest corporate share buyback programs ever, significantly impacting its stock price and investor value.

Final Notes on Share Buyback

When evaluating a share buyback, consider the financial health of the company and the long-term strategy behind the buyback. Assess how buybacks influence shareholder value and company growth.


This has been a definition of Share Buyback meaning.

Explore more from our Business Term Glossary for Entrepreneurs